Think Global and Act Local: The Key to Success in Internationalization
Internationalization has always been a key aspect in business growth strategies. And this is even more true in the retail world than in other sectors.
For internationalization to be successful, it must serve its target audience in a unique way, and the audience changes when we are opening a new market.
In other words, it could be said that, to conquer new markets, you must think global and act local.
Why should we adapt to local needs?
For retail companies, it is very important to pay attention to the specific characteristics of consumers. In an increasingly globalized world, with new players that are tough competition, it is essential to offer shoppers unique experiences, and this is where the need to act local comes in.
It is vital to understand the peculiarities of each market in order to connect with consumers. Otherwise, the experiences you offer will not meet the market's tastes and needs, and they will be ineffective in achieving your desired objectives.
Retail companies have failed in this regard in the past, when their internationalization strategy was focused on a broader distribution of products. To be unique, the experiences must be designed with specific places in mind, to take into account the specific characteristics of the people who live and consume there.
How does HMY help our clients in the internationalization process?
When it comes to internationalization, companies have to strike a balance between two opposing approaches: adapting to the markets of each region, which tends to escalate costs, and implementing standardized processes, which aims to reduce them.
Companies tend to aim for a middle ground between the two approaches, and they often build partnerships locally in order to get a more personalized view of the environment in which they are getting established.
In this sense, thanks to our international presence, HMY can help our clients since our teams in different regions are familiar with the keys to distribution and the structure of retail. According to HMY, the development of the project must have a clear focus on the consumer, which is achieved by repositioning the brands in each of the new markets that they are addressing.
Here, the following question arises: What can HMY offer, do and provide when it comes to translating its global strategy into local activities anywhere in the world?
-Delivery of the same product which matches the client's specifications: design, materials, finishes, etc.
-The same quality standard.
-Short delivery times.
-The same prices.
-Service and support from the HMY team in all countries.
A representation of this is the project that HMY developed for Huawei, a brand of mobile devices, during its process of expansion in Europe. For a Chinese company, establishing itself in a market as demanding as that of the old continent was a challenge, because it had to cater to the cultural and consumer differences of European customers without losing sight of their own brand concept and business vision.
The project consisted in launching of more than 200 points of sale which were spread out between Spain, Italy, France, Belgium, Portugal and the United Kingdom, as well as 10 customer service centers in the major capitals. They achieved success thanks to HMY's know how in the creation of custom sales spaces and the familiarity with the international market, which resulted in an improvement in the brand's performance and in the way that customers perceive their shopping experience with Huawei.
Some other clients who have benefited from HMY's international structure and their global perspective of the market include, for example, Vodafone, Desigual, L'Oreal, and Carrefour. These are great examples of the internationalization of brands thanks to a balance between adapting to the local experience while maintaining a global vision of the brand.
An Ideal Balance between Global and Local
We can conclude that success in internationalization for retail companies comes from finding a balance between a global strategy of expansion and adapting oneself to the needs of each market in which you want to become established.
The latter is only achieved through innovation. By working through innovation, we get new concepts, new products and, together, personalized and effective shopping experiences for companies and their customers.
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